INTENSIFYING RISK AVERSION boosting JPY at the top of the ranks in currencies, followed by USD then CHF. We warned in prior IMT that Indias rate hike as well as anticipated tightening from the Fed (discount rate) and China (actual rate hike not reserve requirements) will weigh on risk aversion. EURUSD next immediate target at $1.3390, which is the 76% retracement of the rally from the $1.2860 low to the $1.5126 high. EURJPY seen testing 120.60, while cable seen capped at $1.5070.
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